Economic Analysis of Marketing of Summer Groundnut in Hingoli district of Maharashtra State, India

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1 International Journal of Current Microbiology and Applied Sciences ISSN: Volume 7 Number 08 (2018) Journal homepage: Original Research Article Economic Analysis of Marketing of Summer Groundnut in Hingoli district of Maharashtra State, India D.B. Chatse*, D.S. Perke and R.D. Selke Department of Agricultural Economics, Vasantrao Naik Marathwada Krishi Vidyapeeth, Parbhani (M.S.), India *Corresponding author A B S T R A C T K e y w o r d s Marketing channel, Marketing cost, Market margin and Price spread Article Info Accepted: 12 July 2018 Available Online: 10 August 2018 The study examined that marketing of groundnut in Hingoli district of Maharashtra state. In present study cost incurred by producer, wholesaler and retailer in groundnut marketing shows that higher production sold in channel III (144.4q.) followed by channel II (73.18 q.) and channel I (69.18q) The highest production sold in channel III followed by channel III and channel I, respectively. Production, retention and marketed surplus of groundnut sold through different channels were Production of TAG-24 groundnut was quintals on 1.64 hectares and SB-11 groundnut and its retention for home on TAG-24 was 2.95 and SB-11 was 2.25 quintals. The results revealed that quantity of TAG-24 groundnut as 12.10, and SB quintals were marketed through channel-i, 9.25 and 11.45quintals in channel-ii, 4.65 and 2.55 and channel-i with percentage TAG-24 and SB-11 groundnut and in channel I, and in channel II and and 8.90 in Channel III, respectively. Thus total marketed surplus of TAG-24 groundnut was per cent and per cent on SB-11 groundnut. Per quintal marketing cost, marketing margin and price spread in groundnut marketing with respect to different channels. In channel-iii price spread was Rs 1105 followed by channel I and channel II Rs and , respectively. Introduction India ranks first in the area under groundnut and second in groundnut production. The major groundnut growing states are Gujarat, Tamil Nadu, Andhra Pradesh, Karnataka and Maharashtra. Groundnut occupies first rank in oilseed crop in India with respect to area and production. In Maharashtra, groundnut is dominant oil seed crop, which is cultivated in all seasons to meet deficiency of edible oil. Mostly groundnut varieties used in Maharashtra are TAG-24, Phulevyas, TG-26, JKG-194, SB-11 TAG-26. The yield level of kharif groundnut is quintals per hectare and summer groundnuts produces about quintals per hectare. The groundnut production in India was thousand tones in w. It decreased by thousand tones as compared to the groundnut production of thousand tones in the year Thus, the annual decrease recorded in the year 2022

2 was -2.99% There was 9 states having groundnut production of more than 100 tonnes Viz. Gujarat, Rajasthan, Tamil Nadu Andhra Pradesh, Karnataka, Madhya Pradesh, Maharashtra, West Bengal, and Telangana in Groundnut crop is cultivated in all the districts of the state. Groundnut is generally grown in rainy season. Gujarat tops with percent of total production followed by Andhra Pradesh percent, Tamil Nadu Percent and Karnataka 1095 percent. Materials and Methods Multistage sampling design was adopted in selection of district, tehsils and villages. In all, 60 wheat growers were selected for the study. Tabular analysis, frequency and percentage methods were used to analyze and compare the data in present study. Marketing cost and market margin of different functionaries were estimated from the data collected from them. The data were collected during the year Marketing cost and market margin was worked out from actual data collected from market intermediaries. Marketing cost incurred by producer was estimated from the data collected from selected cultivators for the present. Price spread of the producer showed the difference between net price received by the producer in the assembling market and price paid by ultimate consumer to produce in the retail market. It includes all the market charges incurred by the producer, wholesaler, retailer and trader as well as profit margin at wholesaler, retailer and trader. Producer's share in consumer's rupee is very helpful in deciding the appropriate strategies for reducing the marketing cost in the present study. It is price received by the farmer expressed as a percentage of the retail price, i.e. price paid by the consumer. If price is the retail price the producer share in consumer's rupee (Ps) is expressed as follows PS = Net price received by the producer 100 Price paid by the consumer Results and Discussion Marketing cost, margin and price spread of groundnut production Marketing channels reveal that how produce passes through different agencies from producer to final consumer. In the study area following prominent channels were observed in the marketing, Channel-I Producer- village traderwholesaler- oil processor (consumer) Channel- II- Producer- wholesaler- oil processor (consumer) Channel-III- Producer- oil processor (consumer) Production, retention and marketed surplus of summer groundnut marketing Production, retention and marketed surplus of wheat sold through different channels were calculated and are presented in Table 1. Production of TAG-24 summer groundnut was quintals on 1.64 hectares and SB- 11 summer groundnut was 32.05quintals on 1.15 hectares its retention for home on TAG- 24 was 2.95 and SB-11 was 2.25 quintals. The results revealed that quantity of TAG-24 summer groundnut as12.10, 9.25 and 4.65 quintals were marketed through channel-iii, channel-ii, and channel-i with percentage41.00, and 16.30, respectively. SB-11summer groundnut was 12.40, and 2.55 through channel-i, II, III, respectively. Thus total marketed surplus of TAG-24 and SB-11summer groundnut was i.e per cent, respectively.

3 Marketing cost of summer groundnut incurred by different intermediaries Producer Item wise per quintal cost of marketing of groundnut incurred by producer in different channels was calculated and presented in Table 2. The cost incurred by the producer was the highest with Rs per quintal in channel-iii followed by in channel-ii and per quintal in channel-i. It was observed that, the proportionate expenditure in the total cost was highest on transportation charges in channel-i (43.03 per cent) followed by losses (21.15 per cent). In channel-ii share was highest on Transportation charges (44.76per cent), followed by losses charges (20.36 per cent). In channel-iii share was highest on commission charges (33.24) transportation charges (24.24 per cent). Wholesaler Per quintalcost of marketing of wheat incurred by wholesaler channel-ii was calculated and presented in Table 3. The result revealed that total cost wasrs and in channel-i and channel-ii. In which share of market fee was high as and per cent followed by shop tax and per cent, per cent storage charges in channel-ii. Then, electricity charges and labour charges was 0.97 and 1.36 per cent, 6.68 and 7.69 license charges, and per cent market fees in channel-ii and channel-iii respectively. Village trader Per quintal cost of marketing of incurred by village trader were calculated and presented in Table 4. The total cost incurred by village trader accounted for Rs and per quintals in channel-i and channel-ii. The share of expenditure in the total cost was the highest on transportation charges and per cent in channel-i and channel-ii followed by, labour charges and21.44 per cent in channel-i and channel-ii, loses19.56 and per cent, in channel-i and channel-ii respectively. Table.1 Production, retention and marketed surplus of summer groundnut marketing SN Particulars TAG-24 SB Farm size (ha) Production (q) Retention for home 2.95 (10.00) 2.25 (7.85) 4. Marketed surplus in channel-i (q) (channel-i) Producer-village traderwholesaler-oil processor (41.00) (43.28) 5. Marketed surplus in channel-ii (q) (channel-ii) Producer-wholesaler-oil Processor (30.45) 6. Marketed surplus in channel-iii (q) (channel-iii) Producer-oil processor 4.65 (16.30) 7. Total marketed surplus (q) (96.61) Note: (Figures in the parentheses indicate percentages to total) (40.25) 2.55 (8.90) (89.39)

4 Table.2 Marketing cost incurred by producer S N Particular Channel-I Channel-II Channel-III 1 Labour charges 13 (18.65) 14 (18.99) 15 (10.39) 2 License 0.15 (0.22) 0.15 (0.20) 0.15 (0.10) 3 Shop tax 0.80 (1.15) 0.80 (1.09) 0.80 (0.55) 4 Weighing charges 0.50 (0.72) 0.50 (0.68) 0.50 (0.35) 5 Loading & unloading 10 (14.34) 10 (13.56) 10.5 (7.27) 6 Transport charges 30 (43.03) 33 (44.76) 35 (24.24) 9 Losses 15 (21.51) 15 (20.36) 6.62 (4.59) 10 Commission (33.24) 11 Market fee (19.09) Total cost incurred by producer Table.3 Marketing cost incurred by wholesaler SN Particulars Channel-II Channel-III 1. Labour charges (8.55) 18 (12.31) 2. Transport charges (9.26) (13.17) 3. License charges 8.94 (6.68) (7.69) 4. Electronic charges 1.30 (0.97) 2.00 (1.36) 5. Shop tax (24.29) (23.60) 6. Communication charges 9.30 (6.95) (7.22) 7. Depreciation, repaired or fixed % (0.23) (1.05) 8. Interest on fixed 11% 0.60 (0.44) 0.80 (0.54) 9. Market fee 25 (18.68) 30 (20.52) 10. Other (8.96) (12.48) TOTAL

5 Table.4 Costs incurred by the village trader (Rs/qt) S N Particular Channel-I Channel-II 1 Labour charges 14 (21.06) 15 (21.44) 2 License 0.12 (0.18) 0.12 (0.17) 3 Shop tax 0.60 (0.90) 0.60 (0.86) 4 Electric charges 0.50 (0.75) 0.50 (0.71) 5 Storage 10 (15.04) 10 (14.29) 6 Transport charges 28 (42.13) 30 (42.88) 7 Depreciation 0.11 (0.17) 0.11 (0.16) 8 Interest on fixed assets 0.14 (0.21) 0.14 (0.20) 9 Losses 13 (19.56) 13.5 (19.29) Total cost incurred by village trader (Note: Figures in parentheses indicate percentage to total) Table.5 Per quintal marketing cost, marketing margin and price spread in Summer Groundnut marketing (Rs/q) SN Particular Channel-I Channel-II Channel-III 1. Net price received by producer (producer s share in consumer rupee) (86.78) (97.94) (94.65) 2. Cost incurred by producer (1.7) (1.94) (4.03) 3. Price paid by village trader (89.50) 4. Cost incurred by village trader Margin of village trader (0.90) Price paid by wholesaler Cost incurred by wholesaler (3.26) (3.14) 8. Margin of wholesaler (6.85) (16.85) 9. Price paid by processer Total marketing cost (23.59) (33.27) (1.03) 11. Total market margin (76.31) (65.19) (73.50) 12. Price spread Market efficiency

6 Storage charges and per cent, Electric charges 0.75 and 0.71 per cent and shop tax 0.90 and 0.86 per cent in channel-i and channel-ii respectively. Per quintal marketing cost, marketing margin and price spread in summer Groundnut marketing Per quintal marketing cost, marketing margin and price spread in wheat marketing with respect to different channels was estimated and it presented in Table 5. In channel-iii price spread was Rs followed by channel II and channel-i Rs and , respectively. In channel-i, Producer and consumer were the two intermediaries while in channel-ii, Producer- wholesalerretailer and consumer was intermediaries. In channel-iii Producer- retailer and consumer is the channel, it was observed that price spread was Rs in channel-iii followed by that of Rs574.8 in channel-ii and Rs in channel-i. Thus, net price received by producer was Rs in channel-i, followed by Rs in channel-ii and Rs in channel-i. The conclusion of the study is as follows 1. The marketing cost incurred by summer groundnut producer was the highest in Channel III as compare to channel I & II. 2. Producer s share in consumer s rupee was highest in channel-ii i.e per cent. Net price received by producer was Rs in channel-i, followed by Rs in channel-ii and Rs in channel-i. References Mane, P.S., Pawar, B.R. and Dahiwade, P.M. (2014) Price spread in marketing channels of summer groundnut in Maharashtra. Agriculture Update, 9(2): Makadia, J.J., Patel, K.S. and Ahir, N.J. (2012). Economics of production and marketing of summer groundnut in Tapi district of South Gujarat, International Research Journal of Agricultural Economics &Statistics., 3 (1): Shelke R. D, D. V. Nagure and S. N. Patil (2009) Price spread & marketing pattern in Maharashtra state, Agriculture update., 4(3&4): SugrivKumarMaurya, R.R.Kushwaha, K.K.Mourya and Sarvesh Kumar (2017) Price spread and marketing efficiency of groundnut marketing in Gorakhpur Districts of Eastern (U.P). Journal of Pharmacognosy and Phytochemistry, 6(6): Vinod Kumar, (2010) A study on marketing cost, price spread, price behaviour and Marketing efficiency in Rajasthan. Indian J. Agric. Mktg. 24(2): How to cite this article: Chatse, D.B., D.S. Perke and Selke, R.D Economic Analysis of Marketing of Summer Groundnut in Hingoli district of Maharashtra State. Int.J.Curr.Microbiol.App.Sci. 7(08): doi:

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